RIYADH: Saudi Arabia’s Industrial Production Index posted a monthly rise of 10.4 percent in July, driven by increases in mining and quarrying and manufacturing activities, official data showed.
The Kingdom’s IPI stood at 101.5 in July, up from 91.9 points in June, according to preliminary results released by the General Authority for Statistics.
The rebound highlights the resilience of Saudi Arabia’s industrial economy as the Kingdom accelerates efforts to expand manufacturing, mining and other non-oil sectors.
The gains come as the ongoing US-Iran conflict disrupts regional supply chains and industrial activity across parts of the Middle East.
In its latest report, GASTAT said: “On a monthly basis, the sub-index of mining and quarrying activity increased by 19 percent.”
It added: “The sub-index of manufacturing activity showed an increase of 1.3 percent, supported by the rise in the activity of the manufacture of coke and refined petroleum products, which increased by 6.5 percent.”
According to GASTAT, electricity, gas, steam and air-conditioning supply rose 5.4 percent in July compared with June, while water supply, sewerage, and waste management and remediation activities increased by 2.6 percent during the same period.
Compared with June, the index of oil activities increased by 16.3 percent in July, while non-oil activities declined by 0.2 percent.
Annual comparison
Despite the monthly uptick, Saudi Arabia’s overall IPI declined by 8.1 percent in July compared with the same month a year earlier, reflecting declines in mining and quarrying as well as manufacturing activities.
According to the report, manufacturing activity also posted a 5.8 percent annual decline, driven by a 13.6 percent drop in the manufacture of coke and refined petroleum products.
On a positive note, the sub-index of electricity, gas, steam, and air-conditioning supply activity recorded an increase of 4.5 percent in July compared with the same period in 2025.
GASTAT added that water supply, sewerage, and waste management and remediation activities also rose by 7.8 percent year on year in July.
On an annual basis, oil activities declined by 11.4 percent, while non-oil activities dropped marginally by 0.3 percent.
The IPI measures changes in the volume of industrial output based on the International Standard Industrial Classification framework and covers mining, quarrying, manufacturing, utilities, and water supply, sewerage, waste management and remediation sectors.
It is based on data from the Industrial Production Survey conducted on a sample of establishments in the targeted sectors. The data are classified according to the International Standard Industrial Classification of Economic Activities, known as ISIC4.
